Three guilty in kickback, tax fraud case

John Nicolo, David Finnman and Constance Roeder were convicted after a week of deliberations.

By Colleen M. Farrell, staff writer

MPNnow

By Colleen M. Farrell, staff writer

Posted May. 20, 2008 at 12:01 AM
Updated May 20, 2008 at 8:17 PM

By Colleen M. Farrell, staff writer

Posted May. 20, 2008 at 12:01 AM
Updated May 20, 2008 at 8:17 PM

Greece, N.Y.

Three of the five figures in what prosecutors called a multi-million dollar assessment kickback scheme have been found guilty.

Former Eastman Kodak Co. tax accountant David Finnman, appraiser John Nicolo, and his wife, Constance Roeder were convicted today after a week of deliberations, according to our news partner News 10 NBC.

The scheme included bribing a town official, illegal tax write-offs and fraud committed by two workers at one of Rochester’s biggest companies, according to the government.

But the defense attorneys for Finnman, Nicolo and Roeder have maintained that their clients did nothing illegal and that the prosecution didn't do a thorough job in building its case.

The jury began deliberating last Tuesday. The trial started March 10.

The government maintains Nicolo, a former tax appraiser from Yates County, conspired with former Greece town assessor Charles Schwab and former Kodak tax accountants Mark Camarata and Finnman to rip off area companies, including Kodak.

According to the government, Schwab would raise assessments of Kodak property so that Finnman, and later his replacement, Camarata, would have the photo company hire Nicolo to negotiate a lower assessment. The prosecution contends Nicolo would split his earnings, which tallied in the millions, with Schwab, Finnman and later Camarata as part of the kickback scheme. IBM, Rochester Gas & Electric, Global Crossing and ITT Industries and the towns of Gates, Greece and Henrietta also were affected by the scheme to a lesser degree than Kodak, according to the prosecution.

Nicolo and Roeder, his wife, are on trial together on charges they allegedly filed false returns and took deductions they weren’t entitled to.

The defense attorneys have said Nicolo has been in poor health and legitimately paid his wife, Finnman and Schwab for their help with his appraisal business. But the prosecution contends that no work was actually done, that some invoices for office equipment were phony and that receipts and checks showing payments going from Nicolo to the other defendants and Schwab and Camarata were really kickbacks.

Camarata, who pleaded guilty, is facing up to 20 years in prison and a fine of between $20,000 and $200,000. Schwab pleaded guilty in March and faces 19 to 24 years in jail and a fine ranging from $25,000 to $250,000.